Issue:
VARIANT_ID isn't updated within /etc/os-release from this commit: https://pagure.io/fork/sgallagh/fedora-release/c/56267336c738f80e3e7a344c740b5d02730c76c6 to Fedora 24 Atomic host.

This is needed in order to differentiate Fedora 24 Atomic hosts from their other versions (Server + Cloud).

With the help from Stephen Gallagher, it was found that the updated package set for fedora-release-atomic is missing when generating Fedora 24 Atomic.

To replicate: 

See: https://paste.fedoraproject.org/390347/

+ cat /etc/os-release after upgrade (the commit above should of added VARIANT_ID="atomic.host" to /etc/os-release

Resolution:
In order to get this resolved, the missing package set (fedora-release-atomic) should be added :)

Many thanks!